RCA vs XLR and Balanced vs Unbalanced


Newbee needs some help understanding the benefits (if any) of using RCA vs XLR connections and using a balanced vs unbalanced components. What are the benefits of using balanced components (DAC > pre-amp >  amp)?   Does balanced sound better for some reason?    It is my understanding that to take advantage of a balanced system, you need to use XLR cables. Correct?  RCA cables will negate the benefits of a balanced system?  For example, if I have a set of cables that are terminated with XLRs on the DAC end and RCAs on the pre-amp end.  If I have a balanced DAC should I be using a balanced pre-amp? A balanced amp? As my line of questioning indicates, I have no understanding of how a balanced system works and why it is preferable to a non-balanced system. Any guidance will be greatly appreciated. Cheers.
bgchz
As already answered above home distances are nowhere near long enough to justify XLR. I will go out on a limb right now and say all the info you will get on this will focus on technical jargon and totally miss the big picture. Which is, as also previously stated, quality matters in audio more than anything else. You can spend a fortune on high end components and then ruin it all by using long runs that cause you to cheap out on wire. Quality wire is so much more important than any technical considerations, but you can flail and flounder many years and never figure this out. It happens. I have seen it.

If you are forced by the layout of your living arrangements and traffic flow that is one thing. But if you are using long runs hoping to gain more in having things off to the side, forget it. Not happening. You will cheap out on wire, and this will cost you ten times what you hope to gain.

XLR vs RCA does not even factor into it. 


Thank you Millercarbon. So having thing to the side is not that crucial. Better to keep components between speakers with short runs of high quality wire. 
@bgchz, before you decide where to locate your components, buy and read Jim Smith’s “Get Better Sound”. He has a section on this topic.

Jim Smith’s profession is setting up and consulting on residential and commercial high end audio rooms and recording studios. He’s received several best-sound-of-show awards.

Check it out.